As we transition into 2025, the energy sector stands at a critical juncture, propelled by an insatiable demand for large battery storage in vehicles. This demand is not merely a fleeting trend; it catalyzes profound transformations in energy generation, transmission, distribution, and consumption. Four key trends are emerging, each poised to reshape the landscape of energy in the coming years: the resurgence of small modular reactors (SMRs), the evolution of power systems for electrified infrastructure, the intricate energy-water nexus, and the drive for resilient power systems.
The reemergence of nuclear power through SMRs is particularly noteworthy. These reactors, typically under 300 MW, are gaining traction as viable alternatives to traditional nuclear power plants. Their compact size and safety features make them attractive to technology giants. Companies like Dominion Energy and X-energy are collaborating with Amazon to develop SMRs, while Microsoft has partnered with Constellation Energy to reactivate the undamaged reactor at Three Mile Island, aiming to power its data centers. Google, too, is in the mix, working with Kairos Power to deliver a reactor in the near future. The advantages of SMRs are compelling: they provide reliable, carbon-free energy and are designed to be inherently safer. However, the shadow of public perception lingers, particularly due to historical events like the Three Mile Island incident in 1979. Nuclear advocates argue that regulatory oversight by the Nuclear Regulatory Commission ensures that safety remains a top priority.
Simultaneously, the electrification of infrastructure is gaining momentum, especially in the European Union. With a directive mandating that all ships connect to onshore power by 2030, ports are undergoing significant upgrades to accommodate this shift. This transition aims to reduce emissions from vessels relying on diesel generators while integrating renewable sources like wind, solar, and hydroelectric power. The Seattle Port exemplifies this trend, having enhanced its power distribution capacity to support electric boats and taxis. The industry is grappling with the complexities of developing effective port distribution networks, which are essential for delivering power from the grid to the port and subsequently to the ships.
The emerging energy-water nexus underscores the critical relationship between energy production and water resources. As electric power generation is the largest consumer of water globally, understanding this interdependence is crucial. Initiatives like the Energy and Water Nexus Industry Connections Program by IEEE SA aim to foster collaboration among various technology sectors, including hydrogen and nuclear. Recent data from the Department of Energy highlights regional variations in water consumption related to energy production, emphasizing that solutions must be tailored to local contexts. As hydrogen gains traction as an energy source, infrastructure upgrades will be necessary to accommodate its unique properties, such as the need for specialized piping to prevent leaks.
Lastly, the push for more resilient power systems reflects a broader shift toward decentralized energy models. The industry is focused on enhancing the grid’s ability to withstand and recover from disruptive events. Progress is being made on standards for energy storage systems, with recent guidelines emphasizing system-level performance during unplanned events. Collaborations, such as that between IEEE SA and the Electric Power Research Institute, are exploring the impact of climate events on power systems, paving the way for innovations like grid-forming inverters. These inverters can operate autonomously, offering exciting applications for remote areas lacking robust transmission networks, as illustrated by a project in St. Mary’s, Alaska, where a grid-forming inverter is set to significantly reduce reliance on diesel generators.
As we look to the future, these four trends—SMRs, electrified infrastructure, the energy-water nexus, and resilient power systems—will not only shape the energy sector but also drive the conversation about sustainability and innovation. The urgency to adapt and evolve in response to these changes is palpable, and the actions taken now will define the energy landscape for generations to come.
